ZEON CORPORATION 4205 - Bridge Salon...2020/01/08 · The sales for the second quarter of the...

Bridge Report （4205） November 27, 2019 https://www.bridge-salon.jp/

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Kimiaki Tanaka President

ZEON CORPORATION（4205）

Company Information

Market TSE 1st Section

Industry Chemicals

President Kimiaki Tanaka

HQ Address Marunouchi 1-6-2, Chiyoda-ku, Tokyo

Year-end March

HOMEPAGE http://www.zeon.co.jp/

Stock Information

Share Price Shares Outstanding (including treasury shares) Total market cap ROE Act. Trading Unit

¥1,375 237,075,556 shares ¥325,978 million 7.2% 100 shares

DPS Est. Dividend yield Est. EPS Est. PER Est. BPS Act. PBR Act.

¥21.00 1.5% ¥100.69 13.7x ¥1,172.40 1.2x

* Share price as of closing on November 26, 2019. Shares Outstanding, DPS, and EPS are based on the results in the second quarter of March 2019.

ROE and BPS are from the last year-end.

Earnings Trend

Fiscal Year Sales Operating Income Ordinary Income Net Income EPS DPS

Mar. 2016 295,647 29,856 32,153 18,079 79.86 15.00

Mar. 2017 287,624 30,767 31,805 23,152 104.31 16.00

Mar. 2018 332,682 38,881 40,893 13,056 58.81 17.00

Mar. 2019 337,499 33,147 36,319 18,458 84.06 19.00

Mar. 2020 Est. 330,000 30,000 32,000 22,000 100.69 21.00

*Unit: million yen, yen

*Estimates are those of the Company. Net income is net income attributed to parent shareholders. The same shall apply hereafter.

This Bridge Report presents ZEON CORPORATION’s earnings results for the first half of the fiscal year ending March 2020, and more.

https://www.bridge-salon.jp/

http://www.zeon.co.jp/


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Table of Contents

Key Points

1. Company Overview

2. The First Half of Fiscal Year ending March 2020 Earnings Results

3. Fiscal Year ending March 2020 Earnings Forecasts

4. Progress of “Mid-term Management Plan SZ-20 Phase III”

5. Conclusions

＜Reference：Regarding Corporate Governance＞

＜Appendix：Fact Sheet＞

Key Points

⚫ The sales for the second quarter of the fiscal year March 2020 were 163.4 billion yen, down 5.7 billion yen year on year.

The sales of elastomers declined 8.3 billion yen. Amid the slowdown of the global economy, the sales of synthetic rubber

and chemicals were sluggish. The sales of specialty materials increased 3.1 billion yen. The performance of optical plastics,

optical films, and battery materials was healthy. Operating income was 15 billion yen, down 3 billion yen year on year. The

profit from elastomers declined 3.6 billion yen due to the decrease in sales volume of synthetic rubber, etc., and the profit

from specialty materials increased 400 million yen thanks to the growth of sales volume of optical films and battery

materials, etc. Both sales and profit exceeded the respective initial estimates.

⚫ There is no revision to the earnings forecast for the fiscal year March 2020. It is estimated that sales will decline 2.2% year

on year to 330 billion yen and operating income will drop 9.5% year on year to 30 billion yen. Specialty materials are

expected to see the growth in sales and profit, as the performance of battery materials will keep growing and the

performance of optical films will bottom out. Elastomers are projected to see the drop in sales and profit due to the yen

appreciation. The dividend amount is to be 21.00 yen/share, up 2 yen/share from the previous term. The estimated payout

ratio is 20.9%.

⚫ The progress rate towards the full-year forecast at the end of the first half term is about 50% for both sales and operating

income, which the number keeps almost the same as usual. It is said that the company plans to secure revenue steadily

while assessing the market environment, as there remain uncertainties over the global economy due to the lingering trade

friction between the U.S. and China, Brexit, etc. How much profit the company can generate, and how close it can be to

achieve their sales goal of over 500 billion yen in the fiscal year March 2021 can be the main point to take a look on.

1. Company Overview

ZEON CORPORATION is a petrochemical manufacturer that maintains numerous products with a large share of the global markets including

synthetic rubber used in automobile parts and tires, synthetic latex used in surgery-use gloves, and other products. The Company’s strengths include

its creative technology development function, R&D structure, and high earnings generation capability. Many of the products and materials

manufactured by Zeon are used in a wide variety of products including automobile parts and tires, rubber gloves, disposable diapers, cell phones,

LCD televisions, perfumes and other products commonly used in everyday life. The Zeon Group is comprised of the parent company,

62 subsidiaries and 8 affiliated companies. Zeon also has manufacturing and marketing facilities in 16 countries around the world.



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（Source: the company）

1-1 Company Name and Management Vision

The company name “Zeon” is derived from the Greek word for earth “geo” (phonetically pronounced “zeo” in Japanese) and the English word

reflecting eternity “eon,” and reflects the Company’s principle of “deriving raw materials from the earth and perpetually contributing to

human prosperity” through the development and application of creative technologies.

(Zeon’s original name “Geon,” used at the time of its establishment, was derived from the trademark acquired for the vinyl chloride

plastics “Geon” from B.F. Goodrich Company in the United States, with which it had capital and collaborative technological agreements.

The company name was changed to “Zeon” when the capital agreement was dissolved in 1970.)

1-2 Corporate History

Zeon was established as a joint venture company formed by the Furukawa Group of companies: Nippon Light Metal Co., Ltd., Furukawa

Electric Co., Ltd., and Yokohama Rubber Co., Ltd. in April 1950 to acquire and use the vinyl chloride resins technology from B.F.

Goodrich Chemicals Co.

In 1951, Goodrich acquired 35% of the shares of Zeon for full-scale technological and capital partnership, and in 1952 mass production of vinyl

chloride resins began in Japan for the first time.

In 1959, Goodrich transferred synthetic rubber manufacturing technologies to Zeon, which, in turn, started Japan’s first mass production of synthetic

rubber. Manufacturing facilities were also expanded to match the growing demand for automobile parts.

In 1965, use of the Company’s unique technology called Geon Process of Butadiene (GPB) for the efficient manufacture of butadiene

(main raw material of synthetic rubber) from C4 fraction was operational.

Goodrich transferred its specialty synthetic rubber business to Zeon along with the shift in its main business focus toward vinyl chloride resins. Capital

ties were dissolved in 1970. Along with these changes, the Company name was changed from Geon to Zeon in 1971.

Also, in 1971, Zeon developed a unique technology called Geon Process of Isoprene (GPI) and began using it to manufacture raw materials including

high-purity isoprene, Petroleum plastics, and synthetic perfume ingredients from C5 fraction.

After entering the 1980s, Zeon aggressively launched new businesses in various fields including photoresists and other information

materials, and medical-related applications in addition to its main synthetic rubber business.

In 1984, production of hydrogenated nitrile rubber Zetpol®, which currently has top share of the worldwide market, began at the Takaoka

Plant.

In 1990, manufacture of cyclo olefin polymer (COP) ZEONEX®, which is the main product of the specialty material business using the

GPI method to extract and synthesize products, was started at the Mizushima Plant.

In 1993, Zeon entered China with its electronics materials business.

In 1999, Zeon Chemicals L.P. (Consolidated subsidiary in the United States) acquired the specialty rubber business of Goodyear Tire &

Rubber Company of the United States to become the world’s top manufacturer of specialty rubber.

In 2000, Zeon discontinued production of vinyl chloride resins at the Mizushima Plant, and thus withdrew from the Company’s founding



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business.

Since the 21st century came, the company has been operating business actively. For example, by releasing ZeonorFilm®, an optical film

for LCD, strengthening global production and sales systems, starting the commercial operation of solution-polymerized styrene-

butadiene rubber(S-SBR) in Singapore, upgrading the equipment for optical films for LCD in Himi-shi, Toyama Prefecture, starting the

operation of the world’s first mass-production factory for super-growth carbon nanotubes, and establishing a joint venture for

manufacturing and selling S-SBR in cooperation with Sumitomo Chemical.

1-3 Business Description

Zeon’s main products use various extracted from naphtha, which is extracted by distillation of crude oil.

Zeon uses butadiene extracted in the GPB method developed in-house from C4 fraction, isoprene monomer, piperylene,

dicyclopentadiene, and 2-butyne extracted from C5 fraction using the GPI method, as raw materials to be processed into synthetic

rubber, synthetic latex and various other materials.


Zeon has three business segments: 1) the elastomer business, where manufactured basic materials are sold to customers; 2) the

specialty material business, where basic materials are submitted to primary processing for sale to customers as processed materials,

and 3) the other business.



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Elastomer Business

Elastomers are “high molecular compounds that have rubber-like elastic properties,” an example of which is synthetic rubber. As

described in the corporate history section of this report, in 1959 Zeon became the first company in Japan to mass-produce synthetic

rubber, which became the foundation underlying all of Zeon’s businesses. This business includes the segments of synthetic rubber,

synthetic latex, and chemical products (Petroleum resins, thermoplastic elastomers) businesses.

1) Synthetic Rubber Business

Example of final product: Tires

Zeon provides the world’s leading tire manufacturers with the world’s highest-quality synthetic rubber for use in tires. Among the

various types of synthetic rubber manufactured are styrene butadiene rubber (SBR), which promotes superior abrasion resistance, aging

resistance and mechanical strength properties, butadiene rubber (BR), which includes a superior balance between elasticity, wear and

low-temperature properties, and isoprene rubber (IR), which features similar properties as natural rubber but with higher quality stability.

Example of product: Automobile Parts


Radiator hoses, fuel hoses, fan belts, oil seals, and various other car engine parts use specialty synthetic rubber that has superior oil

resistance and heat deterioration-resistant qualities.

Zeon is the world’s number one manufacturer of specialty synthetic rubber and features high quality levels and high market share of

specialty synthetic rubber automobile parts. In particular, Zeon’s Zetpol® hydrogenated nitrile rubber, used for timing belts, displays

superior heat and oil resistance and claims high share of the worldwide market.

Furthermore, a new grade of Zetpol® has vastly improved the performance of products using the original versions of Zetpol®.

Products using the new grade of Zetpol® are heat resistant at temperatures that exceed the limits for the original version of Zetpol® by

10 degrees centigrade, thereby extending the life of seals and gaskets, and are in strong demand for use in next generation bio-fuel

engines. The new grade of Zetpol® is well suited to extrusion processing which is being leveraged to expand its usage in various hoses.

Products using Zetpol® have also been well received by customers, and are being used increasingly as a replacement material for more

expensive competitive rubber in Japan, Asia, Europe and North America.

2) Synthetic Latex Business

Synthetic latex is liquid rubber that synthetic rubber dispersed in water. It is used to manufacture gloves, paper coating, textile processing,

adhesives, paints, and cosmetic puffs, etc. Zeon has high share of NBR latex used in cosmetic puffs in the world.



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3) Chemicals Business

Zeon produces C5 fraction by its unique in-house GPI method, and turn it into materials for adhesive tapes and hot melt adhesive traffic

paint binder and a wide variety of other products.

Specialty Material Business

Zeon deals in high value-added materials and parts that are created using its unique technologies including polymer design and

processing technologies.

This is composed of the specialty plastics business, including optical plastics-related products and optical films, the specialty chemicals

business, including specialty chemicals, electronic materials, toners, and battery materials, and the medical devices business.

1) Specialty material Business

◎ Optical plastics-related products and optical films

Cyclo olefin polymer is thermoplastic polymer developed using raw material extracted from C5 fraction using GPI methods and

synthesized with Zeon’s own unique technologies. The commercial products are ZEONEX® and ZEONOR®.

ZEONEX® leverages its high transparency, low water absorption, low absorptive and chemical resistance properties for use in camera

and projector lenses and other optical applications, and in medical use containers including syringes and vials.

ZEONOR® leverages its high transparency, transferability, and heat resistance properties for use as transparent general use engineering

plastics used in light guide plates, automobile parts, semiconductor containers and a wide range of other product applications.

ZeonorFilm® is the world's first optical film by the melt extrusion method from the cyclo olefin polymer. It is excellent in optical

properties, low water absorption / low moisture permeability, high heat resistance, low outgassing and dimensional stability. Not only

for displays for LCD TV, smartphones and tablets, is it expected to be used in a wide range of applications such as OLED displays.


“Diagonally-stretched optical film” is also Zeon’s world first development.

The OELD application as anti-reflection film is progressing, and demand for small- to medium-sized flat panel display applications is

growing. In addition to the current plants in Takaoka and Himi (an annual output of 15 million square meters for optical film in total),

the construction of a plant in Tsuruga, Fukui Prefecture was completed in October 2013.

ZEOCOAT® is organic insulation material used in electronic devices such as cellphones, smartphones, and LCD televisions.

ZEOCOAT® was successful in improving both the picture quality and reliability of displays because of its high transparency, extremely

low water absorption and low gas generation properties. Zeon will aggressively expand its marketing efforts for OELDs, which will be

thinner displays than LCD, thin-film transistors using new semiconductors, and flexible displays.



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◎ Battery Materials

Zeon provides materials for Li-ion battery in this segment; anode / cathode binders, binder for functional layer (heat resistant separator),

and sealant.

Currently, Li-ion batteries are widely used as a power source for mobile devices such as mobile phones and notebook computers. Due

to the rapid popularization of smartphones, there is a strong demand for batteries with higher capacity. Adoption for electric vehicles,

including hybrid and plug-in hybrid cars, and industrial power sources (such as smart grids, etc.) also have begun, since it is lightweight,

compact and can store a lot of energy. On the other hand, there was a problem that lifetime tends to decrease under high temperature

usage.

The company has advanced the function of Li-ion battery binder and succeeded in developing an aqueous cathode binder, which greatly

contributes to longer battery life. In addition, Zeon succeeded in commercializing anode binder, which can raise the storage capacity of

Li-ion battery by 5% to 15%.

Zeon believes that its materials contribute to the safety, the longer life and the more capacity of Li-ion batteries and lead to the widespread

of hybrid and electric cars.

The company focused on the promising future of Li-ion batteries and worked on it for a long time. In this business segment for 2020,

Zeon seeks to keep its top share in the Li-ion battery binder market, aims to expand the diffusion of new material functions that meet the

needs of the application and propose functional materials to realize the next generation of new batteries.


◎ Specialty Chemicals

Zeon deals in specialty chemicals that use derivatives from C5 fraction, such as synthesized fragrances for cosmetics and flavor used in

foods, solvents and plant growth regulator. The Company holds the world’s top share of the synthesized fragrances in green note. They

provide a wide range of specialty products including ingredients for intermediary bodies used in medical and agricultural chemicals,

alternative solvents to CFCs, cleaning agents, urethane expanding agent, and functional ether agents.

2) Medical Devices Business

The medical device market is relatively well insulated from fluctuations in the economy, and is anticipated to grow with the aging society

in Japan and expansion in developing countries. Furthermore, medical device companies are subject to strict laws and regulations, and

they need to submit approval applications to regulatory bodies. In addition, the need to develop relationships with healthcare

professionals is critical and the subsequent high barriers to entry makes this a highly attractive market.

Along with the start of development of artificial kidneys in 1974, Zeon aggressively promoted its medical device business. In 1989, a

subsidiary Zeon Medical Inc. was established to conduct development, manufacturing, sales and all other functions of the medical field

for the Zeon Group. Zeon has shown bountiful development track record both in gastroenterology and cardiovascular area. The Offset

Balloon Catheter as a means of differentiation in the gallstone removal process and with Japan’s first biliary covered stent Zeostent

Covered in the area of gastroenterology products, and the world’s smallest diameter XEMEX IABP Balloon PLUS as a device to aid

the heartbeat at times of acute myocardial infarction in the area of cardiovascular products.



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Currently Zeon is focusing efforts in the development of the biliary stone removal devices that eliminate pain. Zeon has a lineup of

products for extracting biliary stones ranging from extremely large stones to sludge and sand with products such as XEMEX Crusher

Catheter, XEMEX Basket Catheter NT, Extraction Balloon Catheter, and is aiming at a 50% share of the gallstone removal market.

In March 2016, the Company launched the world’s first optical sensor FFR device as a type of guide wire. Because it uses an optical

fiber sensor, mistaken readings of blood pressure measurements rarely occur. The operability as a guide wire has also gained a high

evaluation and Zeon is gaining its share in the Japanese market.

【New Specialty Materials Development: ~Carbon Nano Tube (CNT)~ 】

Aggressive R&D activities have allowed Zeon to launch various new materials into the market, and particularly high expectation is in

the development of “single-wall carbon nanotubes (CNT)”.

1) What is Single-Walled CNT?

Carbon Nanotubes (CNTs) are cylindrical nanostructure formed by hexagonal lattice of carbon atoms. In 1993, Sumio Iijima, Ph.D.,

head of the Applied Nanotube Research Center of the National Institute of Advanced Industrial Science and Technology (AIST),

discovered this structure for the first time in the world and named Carbon Nanotubes (CNTs). CNTs are categorized into single-walled

and multiple-walled CNTs. Multiple-walled CNT is relatively easy to manufacture and the developments for commercial applications

already started.


At the same time, single-walled CNT exhibits the following properties and is superior to multiple-walled CNT:

- 20 times stronger than steel

- 10 times more heat conductive than copper

- Half as dense as aluminum



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- 10 times the electron mobility of silicon

- lightweight but highly flexible

- has extremely high electric-and heat-conductivity properties

Possible CNT applications are electrical conductivity assistance agent in Li-ion batteries, transparent conductive film used in electronic

paper and ultra-thin touch panel because of its high elasticity and strength, and as a thermal interface material. Because of its ability to

absorb a wide spectrum of light, practical applications of single-walled CNT are being promoted in the area of electromagnetic wave

absorbing materials for use in a wide range of fields including energy, electronics, structural materials, and other specialty materials.

(Source: Homepage of Technology Research Association for single Wall Carbon Nanotubes)

Conventional single-walled CNT has several major issues including high levels of impurities, low levels of productivity and high

manufacturing costs, which are about several tens of thousands to hundreds of thousands of yen per gram.

2) Zeon’s Efforts and Position

Against this backdrop, the company aims at establishing technologies that are necessary for the commercialization of new products using

single-walled CNT developed in Japan with its numerous superior qualities in response to the worldwide social demands to realize a

low-carbon society.

Using the synthesizing technology super growth method developed by Dr. Kenji Hata (Ph.D.) of the AIST as a base, Zeon has been

conducting R&D for mass production and application development for compound materials at a validation plant that was established in

December 2010 on the premises of the Tsukuba Center of the AIST. Among the main reasons that the AIST Nanotube Application

Research Center selected Zeon to become its partner were the impressive track record and results obtained by Kohei Arakawa, Zeon’s

former Managing Director, as a researcher in CNT R&D. The company is very important to realize commercial applications of this new

material.

3) Future Endeavors

Having established the mass production technology based on the super growth method, Zeon completed the CNT production facility

and started mass production, the first in the world in November 2015 in its Tokuyama plant at Shunan-city, Yamaguchi Prefecture.

Zeon is the only company in the world that has established mass production technologies for single-wall CNT. About 100 companies



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around the world request for its product samples. Consequently, shipments of samples have already begun. Zeon has also begun to

propose practical applications of this product.

At the same time, single-wall CNT is a type of nanomaterial that is extremely small and fiber shape. Therefore, there is a concern that it

may have some impact upon biological processes depending upon its size and shape. Currently, the AIST is conducting standardization

of the evaluation process, and activities for the OECD endpoint measurement are being conducted, with global standardization and legal

and regulatory aspects being considered.

Other Business

The combination liquid for Reaction Injection Molding (RIM) using the ingredient dicyclopentadiene (DCPD) as a raw material.

1-4 ROE Analysis

FY Mar. 14 FY Mar. 15 FY Mar. 16 FY Mar. 17 FY Mar. 18 FY Mar. 19

ROE (%) 11.7 9.8 8.6 10.3 5.3 7.2

Net income margin (%) 6.63 6.20 6.12 8.05 3.92 5.47

Total asset turnover (times） 0.82 0.80 0.75 0.72 0.78 0.79

Leverage （x） 2.15 1.98 1.86 1.77 1.71 1.69

Since the ratio of net income to sales and leverage are showing a declining trend, ROE was below the 8% that Japanese companies are

told to aim for.

The company is expected to improve the profitability by focusing on the growth of the specialty materials segment.

1-5 Characteristics and Strengths

1. World’s Leading Creative Technology Development Capability

The GPB method used to manufacture butadiene from C4 fraction is the most important development in Japan’s postwar history of

chemicals, and is licensed to 49 plants in 19 countries around the world.

In addition, the Mizushima Plant is the world’s only plant with GPI method to extract high-purity isoprene and other effective substances

from C5 fraction. This Zeon’s GPI method is a completely unique technology, which is not provided to other companies.

These two technologies represent the creative technological capabilities that are among the strengths of Zeon. They also are highly

regarded and have received numerous awards in the global markets. With regard to technologies, Zeon has received 48 awards since

1960 including the GPB and GPI methods, in addition to 26 awards since 1982 for its environment conservation and safety efforts.

2. High Worldwide Share

Zetpol®, ZEONEX®, and ZEONOR® are representative of the products born from Zeon’s highly creative technologies, which have

allowed it to acquire high shares of worldwide markets. In addition, their Leaf alcohol for in cosmetics and food flavorings and NBR

latex for cosmetic puffs have the world’s top share.

3. R&D Structure that Continues to Yield Creative Technologies

Zeon seeks to conduct R&D activities based upon its basic corporate philosophy of “developing creative technologies in special fields

of strength that enables Zeon to contribute to society by generating the world’s leading businesses.”

The Company’s main R&D center is located in Kawasaki City, Kanagawa Prefecture. Zeon has also established the Precision Optics

Laboratory and Medical Laboratory at the Takaoka Plant, the Specialty Chemical Product Research Facility at the Yonezawa Plant, the

Toner Research Facility at the Tokuyama Plant and C5 Chemicals Laboratory at the Mizushima Plant for more efficient R&D activities

to be conducted closer to the manufacturing sites. The technical support bases are in the U.S., Germany, Singapore, and China.

The R&D personnel are never satisfied with the current conditions, and always keep conscious of the threat that their competitors pose

in their research activities. Furthermore, Zeon bases its valuation on a positive point awarding system that places high priority on speed

and creativity. R&D expenses were formerly measured as a percentage of sales, but now it has established an annual value amount of

¥16.0 billion as an investment budget to ensure that stable R&D activities can be maintained in the future.



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2. The First Half of Fiscal Year ending March 2020 Earnings Results

2-1 Consolidated Earnings

*Unit: million yen.

Sales and profit dropped.

Sales were 163.4 billion yen, down 5.7 billion yen year on year. The sales of elastomers declined 8.3 billion yen. Amid the slowdown of

the global economy, the sales of synthetic rubber and chemicals were sluggish. The sales of specialty materials increased 3.1 billion yen.

The performance of optical plastics, optical films, and battery materials was healthy.

Operating income was 15 billion yen, down 3 billion yen year on year. The profit from elastomers declined 3.6 billion yen due to the

decrease in sales volume of synthetic rubber, etc., and the profit from specialty materials increased 400 million yen thanks to the growth

of sales volume of optical films and battery materials, etc. Both sales and profit exceeded the respective initial estimates.

2-2 Trends by Business Segments

*Unit: million Yen

【Elastomers】

Sales and profit declined.

Sales were 91.9 billion yen, down 8.3 billion yen year on year. Due to the slowdown of the global economy, the performance of synthetic

rubber for the automobile industry and the general industry was sluggish for the domestic market, export, and overseas subsidiaries.

The sales of chemicals were stagnant, because Mizushima Factory underwent regular inspection and production output decreased, while

petroleum resins was affected by the downturn of the Asian market.

Operating income decreased 3.6 billion yen year on year to 5.9 billion yen. Cost decreased, but profit was affected by the decline in

shipment amounts of synthetic rubber and chemicals, the drop in prices due to the raw material formula, etc. Operating income rate

decreased 3 points year on year from 9.5% to 6.5%.

Among synthetic rubber, the demand for general-purpose rubber for tires was weak, but BR and S-SBR grew, and sales volume increased

3% year on year.

1H FY 3/19 Ratio to sales 1H FY 3/20 Ratio to sales YoY Compared with the

initial forecasts

Sales 169,031 100.0% 163,358 100.0% -3.4% +2.1%

Gross profit 49,286 29.2% 47,361 29.0% -3.9% -

SG&A 31,307 18.5% 32,341 19.8% +3.3% -

Operating Income 17,979 10.6% 15,020 9.2% -16.5% +3.6%

Ordinary Income 20,273 12.0% 16,045 9.8% -20.9% +3.5%

Net Income 14,549 8.6% 11,550 7.1% -20.6% +5.0%

1H FY 3/19 1H FY 3/20 YoY

Sales

Elastomer Business 100,224 91,920 -8.3%

Specialty material Business 42,411 45,471 7.2%

Other Business 27,565 27,015 -2.0%

adjustment -1,169 -1,048 -

Total 169,031 163,358 -3.4%

Operating Income

Elastomer Business 9,545 5,967 -37.5%

Specialty material Business 8,745 9,189 5.1%

Other Business 1,265 1,170 -7.5%

adjustment -1,577 -1,305 -

Total 17,979 15,020 -16.5%



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The sales volume of specialty rubber for the automobile industry declined 9% year on year, because demand weakened globally and the

market floundered.

【Specialty Materials】

Sales and profit grew.

Sales were 45.4 billion yen, up 3.1 billion yen year on year. As for plastics, optical plastics and optical film-related products sold well.

As for specialty chemicals, battery materials performed well.

Operating income was 9.1 billion yen, up 400 million yen year on year. Despite the drop in prices and the augmentation of SGA, the

sales volume of optical films, battery materials, etc. increased, and the use of optical films increased, contributing to business

performance.

Operating income rate declined 0.4 points year on year from 20.6% to 20.2%.

Among battery materials, which performed well, the sales volume of the battery materials for EVs increased 23% year on year. The sale

to the domestic market and European and U.S. automakers was healthy. The sales volume of the battery materials for others rose 9%

year on year. The models for which the company’s battery materials have been adopted for power tools increased.

【Others】

Sales and profit decreased.

The sale of the trading division and the RIM business were sluggish. Operating income rate decreased 0.3 points year on year from 4.6%

to 4.3%.

2-3 Financial standing and cash flows

◎Main Balance Sheet

End of

3/19

End of

9/19

Increase/

decrease

End of

3/19

End of

9/19

Increase/

decrease

Current Assets 227,238 208,580 -18,658 Current liabilities 130,039 107,716 -22,323

Cash 37,534 35,193 -2,341 Payables 82,414 61,978 -20,436

Receivables 78,352 73,145 -5,207 ST Interest-Bearing

Liabilities

12,125 12,125 0

Inventories 71,125 67,768 -3,357 Noncurrent liabilities 35,742 36,266 +524

Noncurrent Assets 197,700 202,503 +4,803 LT Interest-Bearing

Liabilities

12,000 12,000 0

Tangible Assets 102,323 108,380 +6,057 Total Liabilities 165,781 143,982 -21,799

Intangible Assets 3,197 3,057 -140 Net Assets 259,156 267,101 +7,945

Investment, Others 92,179 91,066 -1,113 Capital 256,167 264,003 +7,836

Total assets 424,937 411,083 -13,854 Total Liabilities and

Net Assets

424,937 411,083 -13,854

＊Unit: million yen. Receivables include electronically booked receivables; likewise, payables include electronically booked payables.

Current assets decreased 18.6 billion yen from the end of the previous term, due to the decline in cash & deposits, receivables, and

inventories, etc. Total noncurrent assets grew 4.8 billion yen from the end of the previous term due to the increase of optical film

production equipment, etc., and total assets declined 13.8 billion yen from the end of the previous term.

Total liabilities decreased 21.7 billion yen from the end of the previous term, because payables dropped 20.4 billion yen as the end of

the term fell on a holiday.

Net assets grew 7.9 billion yen due to the increase in retained earnings, etc. As a result, capital-to-asset ratio rose 3.9 points from the end

of the previous term to 64.2%. D/E ratio was 0.09, unchanged from the end of the previous term.



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◎Cash Flow

FY 3/19 1H FY 3/20 1H Increase/decrease

Operating Cash Flow 19,656 11,164 -8,492

Investing Cash Flow -7,296 -10,616 -3,320

Free Cash Flow 12,360 548 -11,812

Financing Cash Flow -18,811 -2,356 +16,455

CF 33,195 32,718 -477

The surplus of operating CF shrank due to the decrease in net income before taxes and other adjustments and the end of the term falling

on a holiday.

As the purchase of property, plant and equipment augmented due to the increase of optical film production equipment, etc., the deficit

of investing CF expanded and the surplus of free CF shrank. The deficit of financing CF declined due to the decrease in the expenditure

for redemption of corporate bonds and acquisition of treasury shares.

The cash position was nearly unchanged.

3. Fiscal Year ending March 2020 Earnings Forecasts

【Full Year Earning】

FY 3/19 Act. Ratio to

sales

FY 3/20 Est. Ratio to

sales

YoY Progress

rate

Sales 3,375 100.0% 3,300 100.0% -2.2% 49.5%

Elastomer 1,981 58.7% 1,900 57.6% -4.1% 48.4%

Specialty Materials 851 25.2% 860 26.1% +1.1% 52.8%

Others 567 16.8% 565 17.1% -0.4% 47.8%

Eliminations -25 - -25 - - -

Operating Income 331 9.8% 300 9.1% -9.5% 50.0%

Elastomer 177 5.2% 144 4.4% -18.6% 41.0%

Specialty Materials 161 4.8% 170 5.2% +5.6% 53.5%

Others -7 - -14 - - -

Non-Operating

Income

32 0.9% 20 0.6% -37.5% 50.0%

Ordinary Income 363 10.8% 320 9.7% -11.9% 50.0%

Net Income 185 5.5% 220 6.7% +19.2% 52.3%

*Units: 100 million yen. Segment income share can be considered to be the same as operating income to sales ratio (Operating margin)

【Various Assumptions】

FY 3/19 Act. FY 3/20 Est. YoY

Yen/ US Dollar 110.7 105.0 -5.1%

Yen/ Euro 128.7 120.0 -6.8%

Domestic Naphtha Price (¥/ kiloliter) 49,500 39,000 -21.2%

Asia Butadiene Price (US $/ ton) 1,372 1,250 -8.9%

There is no revision to the earnings forecast. Sales and profit are estimated to decrease.

There is no revision to the earning forecast. Sales are estimated to decrease 2.2% year on year to 330 billion yen while operating income

is projected to decline by 9.5% to 30 billion yen. As for specialty materials, the battery materials are expected to continue growing, while

optical films are forecasted to bottom out, thus sales and profit are predicted to increase. The sales and profit from elastomers are predicted

to drop due to the impact of the strong yen.

In order to enrich shareholder return, the interim dividend was set at 11 yen/share, up 1 yen/share. The annual dividend is to be 21.00

yen/share. The estimated payout ratio is 20.9%.



14

4. Progress of “Mid-term Management Plan SZ-20 Phase III”

Progress of “Mid-term Management Plan SZ-20 Phase III” covering a four-year period beginning from fiscal year March 2018 is as

follows.

Groupwide Strategy

Growth 1 Reinforce the combined strengths of the Zeon group. Explore ways of going beyond boundaries and collaborating

with external players to provide solutions globally as a contribution to society.

2 Accelerate the pace of new businesses creation and product development in key development areas: global

environment, smart devices, and health and living.

Corporate

Culture

3 Cultivate a corporate culture that places value on taking proactive action by harnessing diverse idea and trying them.

As for the key development areas, the company applies for “global environment (e.g. energy conservation, automobile-related, power

generation and storage)”, “health and living (e.g. self-driving cars, medical devices/materials, daily necessities)” and “smart devices

(IoT-related),” which are estimated to have a high growth rate and probability of innovation.

Under the themes of “speed,” “dialogue,” and “social contribution,” the company fosters more mutual trust with its group members. As

the way it wants to be in FY 2020, the company pursues “Zeon makes the future today with the power of chemistry” and aims to achieve

consolidated sales of more than 500 billion yen.

Overall performance

Sales hit records high consecutively in the fiscal year March 2018 and the fiscal year March 2019 after entering SZ-20 Phase III. For the

fiscal year March 2020, the performance of elastomers for the automobile industry, the general industry, etc. is estimated to slow down,

seeing the decline in sales and profit. On the other hand, the specialty material business is projected to have record-high sales and

operating income, thanks to the good performance of optical plastics, optical films, and battery materials. Total sales are estimated to

decline slightly, but the company thinks that it can earn sales in the order of 330 billion yen stably.

ROE, which is recognized as an important management indicator, is forecasted to recover to the order of 8% this term, because there is

no longer impairment loss at the subsidiary in Singapore. The company aims to recover it to the level at SZ-20 Phase II of the previous

mid-term management plan.

As for shareholder return, the company aims to pay dividends stably and continuously, and the dividend amount is to be increased this

term for the 10th consecutive term.

Strategies by Business Segment

Elastomer Business Specialty Materials Business

☆ Reinforce competitive business by responding

globally to growth markets and raising cost

effectiveness.

☆ Expand business in step with the speed of market growth and

technological progress through focused investment of

resources and stronger collaboration with outside players.

☆ Explore new opportunities and achieve growth based

on the trust built in the market and relationship with

customers.

① Elastomer Business

◎ Investment Situation

The company invested in increasing the production output of the dry products of the specialty cross-linked type Zetpol® at Kawasaki

Plant, and the construction was completed in September 2019. The production output grew 1.5 times.

In the plant in Thailand, the company is constructing a factory for manufacturing acrylic rubber, and it is scheduled to be completed in

the spring of 2020. The production output is to be 5,000 tons per year.



15

◎ Specialty Rubbers

To cope with environmental issues, EVs and fuel-cell vehicles are expected to be distributed, but the sales volume of internal combustion

engine vehicles is estimated to be at a certain level from the viewpoints of cost and efficiency.

The importance of specialty rubber, which is broadly used in the automobile industry, will remain significant, and the company plans to

support the industry by supplying it stably.

The sale of the specialty cross-linked type of Zetpol® is steadily growing.

As for acrylic rubber, the company is increasing production output in Thailand as mentioned above.

Asia Technical Support Laboratory, which was established in 2017, continues attending to clients, selling rubber, and so on.

◎S-SBR (Solution-polymerized styrene-butadiene rubber)

By combining the polymer modification and production technologies of Zeon and Sumitomo Chemical, the company is committed to

providing products that meet Tire customers’ requirements such as “good wet grip,” “low fuel consumption” and “good abrasion

resistance”. It is scheduled to be released in 2021.

It is aiming to seize the leading position in the world. The sales volume of S-SBR is estimated to grow about 1.2 times between 2017

and 2021.

➁ Specialty Material Business

◎Investment Situation

The company is increasing the production output of raw films at Takaoka Plant, and the operation of the new production line is scheduled

to be started in the spring of 2020.

In addition, the company is constructing a new line for optical films for large-sized TV sets at Tsuruga Plant, and its operation is scheduled

to be started in April 2020. Production output is 50 million m2 per year. Furthermore, the company is investing for enhancing the

production output of COP at Mizushima Plant, and it is scheduled to be completed in July 2021. Annual production capacity is 4,600

tons.

◎Strengths of the Optical Film Business

The company considers that this business has the following 4 strengths:

Strength Outline

Strength of the raw

material

Applicability of dicyclopentadiene obtained with the original GPI method

Strength of the plastics Characteristics of the plastics synthesized from raw materials obtained with the GPI method, such as heat

resistance, moisture resistance, and workability

Strength of the

processing technology

The melt extrusion and film stretching technology is unique to the company.

Strength of the

integrated production

With the integrated production, including polymer design, manufacturing, and processing, it is possible to

reflect the needs in the market in polymer design swiftly.

◎Specialty Plastics

(The highly heat-resistant cyclo olefin polymer ZEONEX®T62R adopted for in-vehicle sensing cameras)

ZEONEX®T62R is a plastics product developed for lenses of in-vehicle sensing cameras for which heat resistance is required.

Sensing cameras, which are important devices mounted on the cutting-edge driving support system of automobiles, are used at high

temperatures for a long period of time. The plastics that have been used for lenses turn yellow and are deformed by long-term heat, so

they are not suited for sensing cameras, which require high visibility.

The conventional cyclo olefin polymer (COP) can have heat distortion resistance if the glass-transition temperature is raised, but it turns

yellow easily at high temperatures. Meanwhile, ZEONEX®T62R, which was developed by ZEON CORPORATION, has high heat

distortion resistance and does not turn yellow easily at high temperatures.

As these features were highly evaluated, it was adopted for sensing cameras.



16

(Emphasis on the characteristics as plastics for medical and pharmaceutical use)

“Prefilled Syringe,” a syringe already filled with medicine, is being distributed, because it is possible to reduce the risk of infection,

human error at the time of preparation as the syringe has been filled with an accurate volume of injectable solution in advance, and

administer medicine swiftly at the time of emergency.

The company explained the characteristics of COP as plastics for syringes to Food and Drug Administration (FDA) in May 2019, with

the aim of distributing it in the huge U.S. market.

In October 2019, the company gave presentations about COP properties; “Transparency, low impurity concentration, moisture exclusion,

and chemical stability comparable to those of glass,” “Mechanical strength higher than that of glass, and very little absorption and

aggregation of proteins,” etc. at the academic conference regarding prefilled syringes held in Sweden.

◎Battery materials

Along with the increase in capacity of Li-ion batteries and applications in automobiles, the use of separators with functional layers are

rapidly expanding to improve safety.

As for the company’s battery materials, the sealing materials contribute to preventing leakage of electrolyte and help increase batteries

life spans. Additionally, since the launch of binders for batteries’ functional layers in 2015, its use has been expanded especially for

automobiles and is greatly improving safety. Furthermore, the cathodes and anodes binders do not only contribute to the safety and long

life of batteries by reducing the expansion and contraction resulted by charging and discharging, but also catalyze the chemical reaction

that occurs on the surface of the active materials enabling more power output.

The sales growth of the company’s battery materials is expected to significantly exceed the growth of the overall Li-ion batteries market.

◎ Electronic Materials

The company released ZEP530A, an electron beam resist for next-generation electronic parts.

ZEP530A, an ultra-high-resolution electron beam resist, is a main-chain-broken positive electron beam resist that is excellent in

resolution and dry etching resistance, has significant process margin, and enables the formation of thin films.

This is suited for the compound semiconductor process, including 5G semiconductors for high frequencies and power semiconductors

for high voltages. As the distribution of the fifth-generation mobile communication system (5G) is drawing closer, the company estimates

that the sales of electron beam resists will double between 2015 and 2025, and CAGR (compound annual growth rate) will reach 11%.

◎Medical devices

The domestic market of less-invasive medical devices has continued to grow at 2.2% year-on-year, especially the FFR* is a high growth

market, which grew more than 20%.

As for the cardiovascular business, the company aims to increase its market share by improving the accuracy and reliability of optical

sensor FFR which started being sold in 2016.

As for the endoscopic business, the company is focusing on providing minimally invasive devices. It launched a new balloon catheter

for extracting biliary stones and a new model of biliary stents in the fiscal year March 2018. The company aims to launch new models

of hemostatic forceps and clips in the fourth quarter of fiscal year March 2020 focusing on the endoscopic business.

The company's sales of medical devices are planned to increase 2 times between FY 2017 and FY 2020.

* FFR (functional flow reserve measurement)

This indicator measures how much blood is obstructed in the case of lesion-caused stenosis in the coronary artery.

<CSR activities>

The company’s basic policies for CSR are “to ensure compliance and meet society’s needs for safety and security,” “to contribute to

sustainably developing society and protecting the global environment through our corporate activities,” and “to ensure that each and

every Zeon person is aware of CSR and acts accordingly.” The company takes the following concrete actions, in order to attain

sustainable development goals (SDGs).

Signed the United Nations Global Compact (UNGC)

The company will conduct corporate activities while respecting the global standards, in order to follow the Ten Principles of UNGC and

actualize a sustainable society.



17

Continuation of volunteer activities in Tohoku

After the Great East Japan Earthquake, a volunteer event has been held 66 times in 7 years from October 2012, and a total of 520

employees have participated. Currently, the company is giving support for agriculture, fisheries, etc.

Construction of a corporate dormitory with the CLT method

CLT stands for Cross Laminated Timber, which is a wooden material produced by piling and bonding them so that their fiber directions

can be perpendicular to each other. There are some merits, including speedy construction and excellent heat resistance, and it is being

distributed rapidly for the effective use of forest resources.

The company used timber from forest thinning in an area of 4.9 million m2 in Okayama Prefecture, for constructing the corporate

dormitory of Mizushima Plant.

LNES solar card-type lamp

In project LNES, which is an open innovation project of the company, a solar card-type lamp was commercialized.

Project LNES pursues the possibilities of plastic solar cells. In such project, the company has been developing various products by using

the solar card based on the nanocarbon technology as a core technology, and the solar card-type lamp is the first step.

The solar card-type lamp is a lighting device that recharges itself with daylight and lights up at night with the lamp connected to the solar

card. Funds were raised through crowdfunding.

5. Conclusions

The progress rate towards the full-year forecast at the end of the first half term is about 50% for both sales and operating income, which

the number keeps almost the same as usual.

It is said that the company plans to secure revenue steadily while assessing the market environment, as there remain uncertainties over

the global economy due to the lingering trade friction between the U.S. and China, Brexit, etc.

How much profit the company can generate, and how close it can be to achieve their sales goal of over 500 billion yen in the fiscal year

March 2021 can be the main point to take a look on.



18

<Reference: Regarding Corporate Governance>

◎Organization type, and the composition of directors and auditors

Organization type Company with an audit and supervisory board

Directors 10 directors, including 3 external ones

Auditors 5 auditors, including 3 external ones

◎Corporate Governance Report

Last update date: ：July, 4, 2019

Basic policy

Our company respects the interests of a broad range of stakeholders, including shareholders, and aims to earn revenue and continuously

improve our corporate value while adjusting the relations of interests. To do so, we will make continuous efforts to establish a system

for realizing efficient, sound business administration through corporate governance.

In addition, we will make decisions and execute business operations swiftly after clarifying the functions and roles of each institution

and each in-company organization by developing internal control systems. We will properly monitor and disclose its progress and results

and strive to improve the transparency of our business administration.

Reasons for Non-compliance with the Principles of the Corporate Governance Code (Excerpts)

(All principles are stated based on the code before the revision in June 2018.)

Our company follows the principles of the corporate governance code.

Disclosure Based on the Principles of the Corporate Governance Code (Excerpts)

Principles Disclosure content

【 Principle 1-4 The so-called strategically held

shares】

・Before strategically holding shares of any other companies, we

consider carefully if the strategically held shares of a company

strengthen the relationship between us and our business partners, the

society and other stakeholders and will eventually enhance our

corporate value in a medium- to long-term perspective.

・As for shares held based on these considerations, the company will

annually verify the appropriateness of holding shares of each company

by considering the appropriateness of its holding purpose and whether

the benefits, risks, etc. that come along are commensurate with the

capital cost. Most recently, the Board of Directors made the

verification in their meeting, which was held on October 31, 2018, and

will decide whether to reduce shares of companies that are

acknowledged to have lost their holding purpose.

・We will determine when to exercise our voting right of strategically

held shares based on a medium- to long-term viewpoint on

enhancement of the corporate value of the company that we invest in.

Principle 5-1 Policy on constructive dialogue with

shareholders

・In our company, the Department of Corporate Communications is in

charge of interacting with our shareholders, and the executive

responsible for CSR manages the office.

・ The Corporate Communication Dept. appropriately exchanges

information with the Corporate Planning Dept., the Accounting &

Finance Dept., the General Affairs Dept., the Legal Affairs Dept., etc.

and provides precise and unbiased information to our shareholders.

・Our company will continuously strive to enrich methods of dialogue



19

other than individual interviews, such as holding information sessions

for investors on a quarterly basis, improving explanatory materials for

our financial results disclosed on our website, and participating in

company information sessions for individual investors.

・ The Corporate Communications Dept. collates and analyzes

opinions obtained through interaction with our shareholders when

necessary and report them to the Representative Director.

・Our company thoroughly manages unreleased important facts in

accordance with the “Insider Trading and Timely Disclosure

Management Rules”, and communicates with our shareholders to

prevent information leak.

This report is intended solely for information purposes, and is not intended as a solicitation for investment. The information and opinions contained

within this report are made by our company based on data made publicly available, and the information within this report comes from sources that

we judge to be reliable. However, we cannot wholly guarantee the accuracy or completeness of the data. This report is not a guarantee of the

accuracy, completeness or validity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to this

report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are

the responsibility of the individual and should be made only after proper consideration.

Copyright(C) 2019 Investment Bridge Co., Ltd. All Rights Reserved.



20

<Appendix：Fact Sheet>

<Major Shareholders>

Shareholder

Number of

Holding Shares

(thousand)

Rate (%)

Yokohama Rubber Co., Ltd. 22,682 10.38

Mizuho Bank, Ltd 9,600 4.39

Japan Trustee Services Bank, Ltd. (Trust Account) 9,481 4.34

The Master Trust Bank of Japan, Ltd. (Trust Account) 8,745 4.00

National Mutual Insurance Federation of Agricultural 8,200 3.75

Asahi Mutual Life Insurance Company 7,679 3.51

BNY GCM CLIENTACCOUNT JPRD AC ISG (FE-AC) 6,674 3.05

Asahi Kasei Corporation 6,438 2.95

The Norinchukin Bank 4,000 1.83

Zeon Corporation Client Stock Ownership Association 3,648 1.67

87,147 39.87

＊Total number of shares issued at the end of the term common stock 237,075,556shares

As of Mar. 31, 2019



21

<Selected Financial Data> (Units: Million Yen)

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Net sales 307,524 295,647 287,624 332,682 337,499

Gross profit 82,636 87,187 86,925 101,272 96,742

Operating income 28,245 29,856 30,767 38,881 33,147

Ordinary income 31,098 32,153 31,805 40,893 36,319

Net income 19,080 18,079 23,152 13,056 18,458

EPS (JPY） 84.1 79.9 104.3 58.8 84.1

DPS (JPY） 14.00 15.00 16.00 17.00 19.00

Total assets 399,512 384,753 411,415 440,519 424,937

Net assets 215,631 215,586 244,634 259,940 259,156

Interest bearing liabilities 58,889 57,064 43,177 38,573 24,125

Capital expenditures 28,516 27,650 22,122 14,568 14,640

Depreciation & Amortization 19,439 20,904 20,431 20,539 18,780

R&D Expenses 13,627 14,148 13,233 15,103 16,480

260,000

280,000

300,000

320,000

340,000

360,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Net sales

0

10,000

20,000

30,000

40,000

50,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Operating income

250,000

300,000

350,000

400,000

450,000

500,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Total assets

50,000

100,000

150,000

200,000

250,000

300,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Net assets

10,000

15,000

20,000

25,000

30,000

35,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Capital expenditures

16,000

17,000

18,000

19,000

20,000

21,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Depreciation & Amortization

010,00020,00030,00040,00050,00060,00070,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Interest bearing liabilities

11,000

12,000

13,000

14,000

15,000

16,000

17,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Research and Development Expenses



22

<Financial Summary>

(％)

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Operating Income Margin 9.2 10.1 10.7 11.7 9.8

Net Income Margin 6.2 6.1 8.0 3.9 5.5

Total Asset Turnover (times) 0.80 0.75 0.72 0.78 0.78

Capital Ratio 52.9 54.8 58.4 58.4 60.3

ROE 9.8 8.6 10.3 5.3 7.2

R&D-to-Sales Ratio 4.4 4.8 4.6 4.5 4.9

0.0

4.0

8.0

12.0

16.0

20.0

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Operating Income Margin

0.0

2.0

4.0

6.0

8.0

10.0

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Net Income Margin

0.00

0.20

0.40

0.60

0.80

1.00

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Total Asset Turnover (times)

40.0

45.0

50.0

55.0

60.0

65.0

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Capital Ratio

0.0

4.0

8.0

12.0

16.0

20.0

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

ROE

3.0

3.5

4.0

4.5

5.0

5.5

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

R&D-to-Sales Ratio



23

<Segment Information>

(Units: Million Yen)

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Sales

Elastomer Business 188,829 178,940 166,243 194,570 198,087

Specialty Material Business 70,875 70,979 74,980 86,479 85,142

Others 50,049 47,950 49,038 53,928 56,733

Eliminations and corporate assets -2,229 -2,222 -2,637 -2,295 -2,463

Consolidated 307,524 295,647 287,624 332,682 337,499

Operating income



Others 2,017 2,503 2,865 3,206 2,786

Eliminations and corporate assets -36 -1,592 -2,482 -3,237 -3,446

Consolidated 28,245 29,856 30,767 38,881 33,147

Total assets



Others 26,919 27,873 29,165 30,907 32,907

Eliminations and corporate assets 97,723 82,404 98,523 108,353 93,539

Consolidated 399,512 384,753 411,415 440,519 424,937

Depreciation & Amortization



Others 278 316 353 326 302


Consolidated 19,439 20,904 20,431 20,539 18,780

Capital Expenditure



Others 355 395 342 362 359


Consolidated 28,516 27,650 22,122 14,568 14,640



24

150,000

160,000

170,000

180,000

190,000

200,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Elastomer Business Sales

0

5,000

10,000

15,000

20,000

25,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Elastomer Business Operating income

50,000

60,000

70,000

80,000

90,000

100,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Specialty Material Business Sales

0

5,000

10,000

15,000

20,000

25,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Specialty Material Business Operating

income

44,000

46,000

48,000

50,000

52,000

54,000

56,000

58,000

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Others Sales

0

500

1,000

1,500

2,000

2,500

3,000

3,500

FY3/15 FY3/16 FY3/17 FY3/18 FY3/19

Others Operating income


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